July 6, 2011, 11:46 AM

Amazon makes a fulfillment push in Indiana and Pennsylvania

The retailer rewards states taking a friendly approach to online sales taxes.

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Amazon.com Inc. this week said it would build a fulfillment center in Indiana and also hire several hundred workers for a similar facility in Pennsylvania.

Amazon, No. 1 in the Internet Retailer Top 500 Guide, plans to open its new, 900,000-square-foot distribution facility in Plainfield, IN, by the end of summer. Amazon says it will hire hundreds of full-time and seasonal workers to staff the facility.

When the center opens, Indiana will have four Amazon fulfillment centers; all the centers in Indiana are operated by Amazon subsidiary Amazon.com.indc LLC.  Operating fulfillment centers via a subsidiary enables Amazon to avoid collecting sales taxes on online purchases, as states such as Indiana do not consider Amazon subsidiaries as constituting an in-state physical presence for the retailer. That sets Indiana apart from California, for example, which recently passed a law that imposes a sales tax collection requirement on web retailers that operate facilities in the state through a subsidiary. "We're expanding in Indiana because Gov. Daniels and other state officials have demonstrated their commitment to Amazon jobs and investment,” says Dave Clark, vice president, Amazon North American operations.

Amazon also says it will hire several hundred full-time workers for its fulfillment center in Breinigsville, PA, which is located near Allentown; the center is operated by Amazon subsidiary Amazon.com.dedc LLC. Positions include night shift jobs for picking, packing and shipping and receiving.

Amazon operates more than 60 fulfillment centers around the world.

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